Purposes
Discretionary trusts still serve a useful function, despite their original source of popularity (tax savings) having diminished in most countries. They still continue to be used for these reasons, among others:
- to protect improvident beneficiaries against creditors - as the beneficiary has no claim to any specific part of the trust fund, none of the trust fund is vulnerable to attachment by the trustee in bankruptcy of any beneficiary
- to exercise control over young or improvident beneficiaries
- to create flexibility to react to changes in circumstances
- in certain jurisdictions, a discretionary trust can be used to protect family assets from forming part of any divorce settlement.
Read more about this topic: Discretionary Trust
Famous quotes containing the word purposes:
“A material resurrection seems strange and even absurd except for purposes of punishment, and all punishment which is to revenge rather than correct must be morally wrong, and when the World is at an end, what moral or warning purpose can eternal tortures answer?”
—George Gordon Noel Byron (1788–1824)
“I have been reporting club meetings for four years and I am tired of hearing reviews of the books I was brought up on. I am tired of amateur performances at occasions announced to be for purposes either of enjoyment or improvement. I am tired of suffering under the pretense of acquiring culture. I am tired of hearing the word “culture” used so wantonly. I am tired of essays that let no guilty author escape quotation.”
—Josephine Woodward, U.S. author. As quoted in Everyone Was Brave, ch. 3, by William L. O’Neill (1969)
“Since [Rousseau’s] time, and largely thanks to him, the Ego has steadily tended to efface itself, and, for purposes of model, to become a manikin on which the toilet of education is to be draped in order to show the fit or misfit of the clothes. The object of study is the garment, not the figure.”
—Henry Brooks Adams (1838–1918)